How to file Income Tax return when window to file the tax return is closed by Income Tax portal.

31st March, 2021 has gone and the assessee who have failed to file their respective ITR for AY 2020-21  tend to lose their claim of income tax refund what they are eligible for. Section 139 of Income Tax Act allow the assessee to file its ITR on or before the specified due date which is 31st October or 31st July of relevant Assessment year as the case may be. However, assessee can file a belated return also before the end of the relevant assessment year, however beyond that ITR cannot be filed. Most of the people miss this deadline. The reason in most of the cases is that the individual assessee generally is not aware of it . It actually happens largely in NRIs cases where they have income taxable in India and TDS has also been deducted but have failed to file ITR. It results in loss of TDS refund which could have been claimed by filing the ITR.

However, there is another option to file ITR even if the last date of filing has been missed. Section 119 (2)(b) provides that CBDT can authorize income tax authority to admit an application or claim of any refund after the expiry of period specified by the Act. To operationalize this provision, CBDT issued a circular (No. 9/2015) dated 09.06.2015 vide F.No. 312/22/2015 which contains the comprehensive guidelines on the conditions for condonation and the procedure to be followed for deciding such matters.

For those who find difficulties in filing delayed return and whose TDS refund has been stuck due to anomalies of the law, below mentioned is the detailed procedure which can be followed for filing delayed ITR

Stepwise procedure

Step-1:  File a manual application to the jurisdictional chief commissioner/principal chief commissioner of the income tax. You can check your jurisdiction in ‘My Profile’ under the tab ‘PAN details’. The application shall be properly addressed to the commissioner and shall contain all the material fact. There must be a valid reason for non-filing the ITR within the due date along with supporting documents. Also, attach a draft computation and mention the amount of refund along with supporting e.g. Form 26AS or Form 16/16A or tax payment challan etc.

Step-2:  After submitting an application as above, the jurisdictional commissioner or chief commissioner as the case may be, shall ask for the information regarding your claim. A notice will be issued by the department which can be accessed through ‘e-proceeding portal’ and a reply to the notice may also be submitted online.

Step-3: After due verification of all the information provided by the assessee, the commissioner or principal commissioner as the case may be, shall decide upon merit in accordance with law and shall pass an order under section 119(2)(b). The order will be available under ‘e-proceeding’ tab only and shall also be emailed on the registered email id of the assessee.

Step-4: After receiving such order, assessee may proceed with filling return as depicted in following images.

Step-4

Select assessment year and ITR Form and under filing type select ‘u/s 119(2)(b). Thereafter, below screen will appear,

ITR Form and under filing

Attach the ITR XML and mention the order number and date of order and submit. The ITR will be filed. The ITR shall thereafter will be processed normally as if the return is filed u/s 139.

Following further points shall also be applicable under section 119(2)(b),

  • If the amount of refund claim is less than Rs. 10 lakhs then Principal Commissioner/Commissioner shall be vested with the power of acceptance or rejection of application filed u/s 119(2)(b)
  • If the refund claimed is more than Rs. 10 lakhs but less than Rs. 50 lakhs then Principal Chief Commissioner/Chief Commissioner shall have the power to accept or reject the application filed u/s 119(2)(b)
  • If the refund claimed is more than Rs. 50 lakhs, then CBDT shall consider such application.
  • The application cannot be filed after six years from the end of the assessment year for which such application is made. The application shall be disposed by the competent authority within 6 months as far as possible.
  • An application may also be filed for additional amount of refund after completion of assessment for the same, provided all the conditions are fulfilled subject to following further conditions,
  • The income of the assessee is not assessable in the hands of other person
  • Interest shall not be given on such refund
  • The refund should be arisen due to excess TDS/TCS or excess advance tax or access self-assessment tax

About the AuthorAmit Jindal

Author is Amit Jindal, ACA working as Manager Taxation in Neeraj Bhagat & Co. Chartered Accountants, a Chartered Accountancy firm helping foreign companies in setting up business in India and complying with various tax laws applicable to foreign companies while establishing their business in India.

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Qualification: CA in Practice
Company: Neeraj Bhagat & Co.
Location: New Delhi, New Delhi, IN
Member Since: 28 Feb 2019 | Total Posts: 84
Neeraj Bhagat & Co. is helping foreign companies in opening up of Liaison/ Branch Office in India and complying with various tax laws applicable to foreign companies while establishing a business in India. Neeraj Bhagat is the founder of Neeraj Bhagat & Co. Chartered Accountants, a Chartered View Full Profile

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24 Comments

  1. D KRISHNA says:

    Form 67 not filed before the filling of return income 143(1)issued without considering the exemption under DTAA claimed on foreign income under section 90 Can we file application u/s 119(2) (B) seeking condonation of delay in filling Form 67 and to file revised return to claim exemption under section 90
    2. my profile jurisdiction is Rajasthan whereas we are filling return of income in karnataka where the business running. whether we have to file application u/s 119(2)(B) in Rajasthan or Karnataka.

    1. Neeraj Bhagat & Co. says:

      Yes, you can file for condonation request for Form 67 as well as revised return. The application shall be filed with Rajasthan jurisdiction first. In Case, you are assessable in Karnataka, then Rajasthan jurisdiction will transfer your file to Karnataka jurisdiction. Or else you have to first file for migration of PAN from Rajasthan to Karnataka.”

    1. Neeraj Bhagat & Co. says:

      Since there is no claim or tax payable , chances of getting approval are less unless there is strong reason to file the return .

  2. GANDHI MOHAN BHARATI says:

    There is a doubt. Kindly clarify whether a person who was posted in Siachen from May of an year till December next year who could not come file ITR by due date or even extended date can file ITR after the portal has closed? He has no refund; in fact he has to pay about excess 12,000/- after all deduction from his pay & TDS on Deposits

  3. Farh says:

    Hello Sir,

    For FY 2008-2009 and 2009-2010, my tax was deducted from monthly salary by MNC. But they submitted it to govt. last year in mid Nov. 2020 after updating PAN in records.
    Meanwhile, the demand was raised for my filed return for FY 2018-2019 and 2019-2020.
    Now, the tax is also submitted and demand amount is recovered as well from IT return adjustment.
    3 times even when I rejected the demand.
    How can I get the demand money back which was forcefully adjusted from the IT return?

  4. Sumit Shakkarwal says:

    Hi Taxguru,

    I filed my ITR through cleartax on 31st March 2021 and amount of rupees 21269 has also been charged as interest and fees. Is there anyway this can be refunded or waived off?

  5. Uma says:

    Sir
    Please advice on what to do if on filed ITR , IT Dept notice of missing 26AS under other source , asked to correct and revice return before 31st mar’ 2021, was missed deadline. Notice came very late and system was very slow on 31st

  6. Rakesh D says:

    Thank you for the article. I have a question on Step-1. When you say “a manual application”, should this be submitted as a letter or is this something that can be submitted online? Thanks!

  7. CA. V. RAVI SARMA says:

    Good presentation sir on the subject.
    Whether a tax audit case or tax payable case can be filed, after the deadline, for AY 2020-21 or earlier years. In this COVID situation some of assessee have missed the opportunity. Shall we need to wait till the response from CIT is received. Are there any chances of opening the window for some more time U/s139(4), based on representation made by some tax bar associations.

  8. Arun says:

    In case the return is filed. Can additional claim be admitted under this provision?
    Eg. Interest deduction u/s 24(b) not claimed in ITR filed. Can it be claimed u/s 119(2)(b) ?

    1. Neeraj Bhagat & Co. says:

      You have to file application with jurisdiction AO asking for approval to file . Once you have an approval , then you can file.

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